you, the european central bank working for you. that's in the plus column. the fact that the materials were strong indicates china is doing well and that goes along with the transportation stocks so there's a little bit better tone away from the fiscal cliff. that's where it is right now. >> what about this concept. skeptical, the idea that we're underowned in the stock market and anything -- any resolution could mean stocks. >> a lot of cash on the sidelines that will be put to work if you get a little bit of a sign of a resolution here, bill. happy new year. >> nice tie, but i'm always saying that to you. we're going to the mid-point of the range, dow down 22 points. that's the first hour of the "closing bell." stand by now for hour number two. >> and welcome back, to the "closing bell." i'm mandy drury sitting in for maria bartiromo. it is the end of another trading

day, and, no, we do not have a fix for the fiscal cliff. guess what, the numbers also reflect that. let's take a look at how a day on wall street, looks like the dow is down marginally, 24 points to the downside and the nasdaq off by the biggest percentage loss, down by 22 points and the s&p 500 is down by about seven points, and as i said it is crunch time. there are only three trading days left now for 2012 and still no deal to avoid going over the fiscal cliff. all signs are pointing to more talks for lawmakers to try to hash things out. should wall street bet on a fix before january the 1st or is that wishful thinking? >> let's find out. let's speak to our guests. welcome to all of you. brian, where do you make of where we're going right now? you're the one that remains sort of neutral. you're buying this market right

now, aren't you? >> well, we're pretty much staying put. we're recommending that our clients have a substantial allocation to equities. i mean, bear in mind, it's been a pretty good year despite it being an election year, despite the fiscal cliff and ongoing problems in europe. the market has done better than it has usual done. what's changed? i think there will be continued political turmoil and slow growth but that's, particularly given valuations, may not be a bad year for equities as all. >> i'm going to add to that list having been a good year for the stock market. also had a lot of recovery in the housing market as well. do all these good things, all this progress become undone if we go over the fiscal cliff. >> i think clearly we've seen some healing in housing which is great and as has already been said we've seen some good progress over in europe and in china so that's all great. i'm neutral on equities in my allocation strategy fund, target

rich funds and the reason for that is the fiscal cliff. if we go over the fiscal cliff then i think that given how lean companies are, and as slow as we're growing, we could see the economy dip back into recession and earnings estimates will have to go lower. >> the mastercard report on retail sales not good. the worst since '08, and you're concerned -- obviously there are those who feel that that's a result of people worried about the fiscal cliff, but you're concerned it could have an impact on housing which is one of the few bright spots in our economy as well, correct? >> the view here is that if we go over the fiscal cliff the concern is there's going to be a drain on income and thereby it will rayfect the housing recovery. 50 days since the election and in that 50 days the markets haven't been essentially changed. seen some nascent improvement in the housing numbers and employment numbers and a boom in

m & a activity, $270 billion in m & a, best quarter since 2008 but going over the fiscal cliff puts us at peril in terms of lower income and higher regulatory burdens and just the uncertainty. >> brian, sometimes the media gets the blame for scare mongering and i'm going to therefore try to play the other side and the devil's advocate. is there a possibility that this fiscal cliff talk is a y2k moment? in other words, it's not going to be nearly as bad as we think? >> oh, i think that's a possibility. i think maybe there's a little bit of cynicism in the market and a lot of people in the sidelines which is one of the reasons why the vix is as low as it is. compare this to the negotiations surrounding the extension of the debt ceiling back in august of last year. nothing like the turmoil that's been there. i think a lot has already been baked into the cake. i think right nprobably to the

extent there's the stage set for further negotiations for a grand bargain to set more permanent parameters on tax and spending policy. >> is there anything that's immune to the fiscal cliff talk, anything you would buy right here? >> well, i would say, you know, first of all, i might push back a little bit. i think that the market has been a little bit complacent. i think the market believes that -- than common sense will prevail in this, and i -- i -- as i keep saying i believe that the calculus of congress is complex. it doesn't follow the normal accounting results, and so we just assumed that everything is going to be fine and in that sense we believe that the tail risks regarding the fiscal cliff have not really been fully priced in. we do believe there's risk here. if we can get past this, then clearly i think we've got a very

positive environment given all the other good things that have been said over and above that, that if we go over the cliff, if there's a real possibility, then we'll see consumer incomes go down and like i said earnings expectations are likely to be revised lower, so what do we like fundamentally? >> pretty defensive areas in many cases there? >> i would say that -- >> thank you. we've got to go, guys. thank you for your thoughts and ideas today on our beloved fiscal cliff. >> five days to go and counting before we fall off the so-called fiscal cliff and while there's no deal, more news out of washington and our very own john harwood is there. >> reporter: mandy, we've got a letter from the republican leadership to the president and to the democrats in the senate saying that the house has acted, they passed legislation last year to extend all the tax cuts and to shift the scheduled

sequester cuts from defense to domestic programs, but, of course, in urging the senate to act saying, well, we've acted, now it's your turn, we're simply not going to see the democrats take them up on that because president obama since that letter has won the election and now we're looking at the possibility of a mini deal that would get enacted before january 1st but so far all we've heard are the sounds of silence in the negotiations. a senior white house official told me today when i asked was there any holiday season progress, back channel progress over the past couple of days, got a one-word reply, no. second, the democratic senate leadership says there's a 50/50 chance that we'd get a deal between now and january 1st, but they don't have any progress signs to point to in a tangible way. that's sort of a gut feeling that that will happen, and senate republican leadership aides said we haven't heard anything from the white house or

senate democrats, so right now it's looking stalemated. there still is time for people to come back and pass a temporary kick the can kind of solution that would at least get us past january 1st for a month, two months, three months, but we've got to wait and see over the next couple of days. president obama comes back tomorrow and the senate comes back late tomorrow, and then we'll see if they can get their act together and get it done. >> what do you think the stop-gap would look like, john? what kind of elements need to be addressed immediately? >> there are four really. one would be an extension of all the bush tax cuts under $250,000 in income for some period of time, probably temporary. the second is a stop-gap measure turning off the sequester for some short period of time. it may have a certain amount of spending cuts in there to in effect pay down what would have been taken indiscriminately across the board. in addition to that you would have the doc fix for medicare to prevent doctors reimbursement

from falling precipitously in that program and a temporary extension of unemployment benefits. that's the mini deal we're looking at. the question is whether republicans will cooperate with democrats to do that in the senate and if house speaker john boehner would put that on the floor even if most republicans were not in favor of it. bill? >> okay. we're going to hope that something like that can be at the very minimum at this point. john harwood, thanks. see you later. don't worry, be happy. one of our next guests says should we go over the fiscal cliff, someone else on wall street says the cliff will not be a doomsday event. we'll get them to make their case coming up. >> and also later on. facebook making an about face on using user photos for advertising. >> and winter storm euclid is pummeling the east coast. the latest storm and storm track coming up in the next hour of

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as you know, the president will be cutting short his hawaiian holiday in order to get back to negotiating a deal to avoid the fiscal cliff but at this point the gop leadership in the house has yet to call its

people back. they said they would give him a 48-hour notice, and that hasn't happened yet so at least two days out we're not expecting the house to come back. >> and bad weather as well which might make it tricky. meantime, former presidential candidate and governor of vermont howard dean says going over the fiscal cliff is the responsible thing to do. river twice research president zach cashal says going over won't be a big deal. both are cnbc contributors. welcome back to the show. governor dean, you said going over the cliff would be a responsible thing to do. >> a very interesting discussion we're having here. what i don't see is what wall street has been criticized for lacking for so long is any long-term perspective. let's just say we have two quarters of recession as the cbo says we will, which i think is likely. what we don't say is what's going tonight long-term consequence of leaving things the way they are in the fiscal cliff takes $7.3 trillion out of deficit over ten years, isn't

that what we really have to do? it seems to me i would really be interested in investing in american equities if i knew the financial situation was under hold >> you say the ends justify the means, no matter how painful? >> it doesn't matter how painful it is and it will be a short shallow recession if we go into it. if we kick the can down the road as so many of you are saying we hope would happen. that's not what should happen for the long-term future of the country. >> you're saying, come on, folks, let's settle. it won't be that big of a deal. right? >> i do disagree with howard a little bit in that i don't think cutting $7.3 trillion, the way this deal says that we should, is the best way to -- to deal with our long-term budget issues. kind of like, you know, you know you have to lose weight so you starve yourself as opposed to some sort of pragmatic balance of, you know, diet and exercise and this deal doesn't get you to the pragmatic part.

the flip side, one, cbo projections about future outcomes are based on things being equal and i would ask you to show me how many times those projections have been right but so we're guessing at the fiscal consequences as if nothing happens for 2013. the only thing i feel sure of in life other than death and taxes is that congress will do something in 2013 to deal with these issues. >> and governor dean, don't you feel that all the politicians, and i include all of them in washington, are painted into a corner now with all the talk about the fiscal cliff? >> no. >> and the fears if we go over it, they have to do something, don't you think? >> no, i actually don't think they will. zach and i agree this is not the best way to take 7.3 million. the only reason i picked them is because they are the only none partisan group. where we disagree is i don't think it makes sense.

they will do something good for the democrats, good for the republicans and not so good for the country. if they come to a deal they will cut half the amount of money and half again of that will be nothing and fake accounting. it will be a deal that's great for politics and lousy for the -- >> they are at a point -- >> never have to doing is until we're broke. >> some are saying the president wants to go over in order to gain more leverage and blame the gone. do you think he'll actually obstruct? >> i don't think he'll obstruct but i don't think the republicans will make that kind of a deal. i think it's a good idea for us to go over, if for no other reason to get more leverage so we can in fact deal with -- >> there's two things we won't

deal with and one is the fact that never during the campaign, you cannot raise enough ref crew and you can not lays serious revenue -- balance the budget. they have plants and jobs inner efor you of the congressional district. >> we've had a parade of ceos go through here lately and just had mark bert leone of aetna and he said a lot of same things, ceos are sitting on cash and not hiring, putting a hiring freeze on waiting for some resolution, and they don't want to see us go over the fiscal cliff which you guys are saying might not be a bad thing to do. >> we're going over some version of this. secondly, ceos have been saying

for the post four years uncertainty is preventing hiring and spending. this will mean that you do not have investment and capital spigots opened up on january 1st but it's the current economic spending will not be an additive factor but it hasn't been anyway. >> understood. >> i think that's exactly right. >> unfortunately, we have to leave it there. >> we'll leave it on that agreement. >> i like agreement but it's better than saying we have to agree to disagree. >> thank you. >> financials, the place to be. the sector on track to be 2012's best performers. we'll figurus in and the storm

on the east coast throws retailers into the skids thanks to the winter some coming. back in just a moment. this december, remember --le a] you can stay in and share something... or you can get out there and actually share something. ♪ the lexus december to remember sales event is on. this is the pursuit of perfection. [ male announcer ] it's that time of year again. time for citi price rewind. because your daughter really wants that pink castle thing. and you really don't want to pay more than you have to. only citi price rewind

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but this idea isn't fragile. when times get tough, it rallies us as one. every day, more people believe in the american idea and when they do, the dream comes true. we're grateful to be a part of it. . we have breaking news in washington. no, not that news but important

and sort of in the same ballpark. john harwood has the story. john? >> reporter: related news, bill. part of the administration's earth to put pressure on the cook to do something about the fiscal cliff and the debt ceiling. treasury secretary geithner sent a letter to harry reid, the senate majority leader, saying the united states government will hit its statutory debt limit on december 31st. that is the same day that we would go over the fiscal cliff. now the treasury has certain steps they can take to avoid breaching the debt ceiling that will carry the government through february or march, but at the moment in a technical sense treasury secretary geithner is telling the congress we're hitting the debt ceiling at the end of this year which is the part of the, as i mentioned, part of an effort to get congress to step in and act, not only on the fiscal cliff but on the debt ceiling, bill. >> thanks very much for the breaking news. we'll keep monitoring the situation. thanks, john harwood.

a look now at financial sector and whether or not you should put your money in the banks. >> 12 months ago there was a lot of buzz about the regionals, but now it's the big banks that have done really, really well. we have the president and ceo at bell rock capital and jeffrey hart. welcome back. >> cassandra, how did we get that wrong, those saying was not a good environment for about the banks, 2012, low interest rates, you know, the low loan demand but yet the banks have done so well this year. why? >> well, it's time. time has been on banks' side. it took time for the real estate market to bottom and start to inch back up, and it took time for them to rebuild their capital positions and to let some of these problem loans work themselves out. that's still going on. not only did 2012 help but i think 2013 will be even better

for them. >> i'm wondering, jeff, a lot of the headwinds that bill just mentioned, the regulatory environment and very low interest rates which squeezes their margins, are any of these things going to clear up and go away in 2013? >> well, i think one of the reasons that you are seeing the big banks doing well coming into year end isn't so much that those things are lessening but they are better equipped to handle it. right now with the regulatory and the net interest margin pressures, scale and efficiency is more important than ever and the money center banks have it. it's a matter of whether they can deliver it. they have the scale and starting to see them deliver the efficiency so cost management is a big thing that helps them. also they have businesses away from the traditional banking, net interest lending, and capital markets, could see some pretty strong numbers next year and the money center banks, they are shrinking their liability footprintson so on a funding

cost side they have a lot of advantages that a lot of other smaller banks don't have. >> let's use an exam. bank of america, one of the highest profile xampsles. last year the worst performing dow component and this year the best performing dow component. the old dogs of the dow theory worked out well once again. why has it done so well, cassandra? >> done so well because they had nowhere else to go but up. they cleaned up their balance sheet and the valuation on it was so inexpensive. >> would you buy it? >> i would absolutely buy it here. easily you have a $13 upside and closer to 20 as their balance sheet continues to get cleaned up and the book value becomes more credible. that's when you could see it approach $20 a share. >> what are your banking picks, jeff? who do you like? >> i think over time b of a works but for new money being

brought in i'd rather look at citigroup where you haven't had quite the run but have the capital return and the international story and like the capital market numbers, too, morgan stanley or goldman sachs, if we can get any relief, a lot of activity in the markets and those stocks could do well. >> we are tracking euclid, this powerful pinter storm. could inflict some major damage. we'll check in with our friends at the weather channel coming up next. plus, a wear of retail analysts weigh in on the storm's impact of retail's bottom line. and a little bit later on former pennsylvania governor ed rendell is going to be showing us to find out what the co-chair of the fix the debt commission has to say now that we're just five days from going over. and before hitting the break, here's a message from the head of a pennsylvania company to our nation's lawmakers in

washington. my name is richard phillips. we move the nation's most critical freight all over the world, and we employ 2,500 people. if our nation's politicians fail us and we go over the fiscal cliff, we'll feel the impact immediately. capital goods will start to slow down, and people will stop buying the kind of large home furnishings that we move every day. we'll buckle down and find a way to make it a strategic advantage but it won't be pretty for us or our customers. we elected to you lead, not to follow the hard left or hard right. govern from the middle and lead. ♪

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a huge storm spanning frlgts midwest to the east coast is dumping plenty of snow and rain across the nation. dr. greg postell from the weather channel has more on exactly what's going on. over to you. >> thanks, the snow storm is beginning to wind down across parts of the midwest. parts of ohio, really, the know is almost over. they have received in parts of ohio over a foot, but it's really beginning to pick up in the northeast. a look at the radar to show you the rape/snow line lies right across new york city. that will be lifting northward over the next several hours.

folks, you'll turn into rain, philly, trent op, d.c., already rain. future radar shows mostly rain right along the i-95. do far inland to produce along the coast. interior vermont, western maine, likely over a foot of snow and boston likely all rain again winding down all in all later on tomorrow evening but the snow continues to linger on late tomorrow across parts of northern maine. here's the fall forecast, over a foot of snow and the ski resorts will be doing great. the coastal cities, again, largely rain and travel delays will be impacted significantly where we have new york, philly and d.c.

>> sounds like retailers can't catch a brick right now. superstorm system and now the storm is barreling its way across the country and with holiday pale at their weakest, heard that this morning, do retailers, can they make up for last yund. >> thank you. have, why don't you go first. what impact is it going to have? >> you have declining dispose al income and petter problems. you have the retailers that have inconspicuous stock and consumers are concerned about everything from hurricane sandy

and the senseless slaughters in sandy hook, connecticut, spending less and giving more to charities. >> jan, i don't want to minimize any of this, the damage that this storm has already inflicted in parts of the country and could still inflict, but we were in an environment where people were just not shopping to begin with. do you think retailers could use this as a good excuse going forward? >> yeah, bert's here with me the four horsemen and apocalypse. i have to agree with him and there's really not a lot of time left. today was going to be a very, very big day, bases where it's not being snow affected. i think you'll see a strong performance. i know i was tough, the biggest deal. the fiscal cliff killed us.

retailers went deep on profession and they said, no. i thrill city nyse's will be bert. >> do you think it's getting better in 2013, bert? >> 2013 starts the retail ice age and maybe the 500 to 1,000-day retail recession. shopping centers, malls-based, starting to refinance some of them will create record vak kiss on the laws. >> which stocks specifically are going to suffer in home depot,

radio shack, possibly shorts authority, some of the other office supply category killer stores. >> let me go in mr. glass half hull. anybody coming through had. as mentioned referenced so well. you also have you are even outfitters tutting it on ol centr retailers who have not reinvested back in the business are secularly having the shoppers shift away from them. they are going to have a tougher time. >> i think it's too late to save herb greenberg's bet with brian sullivan for this year, but you were on our show just recently,

and you've turned positive for j.c. penney. >> i was a lot more positive at 17 than i do 21 and i do think the middle will do better than the upper end or the bottom. the upper end retailers will get hurt because of the tax rates and the lower end hurt because of social security taxes. guys in the middle will do better. the place to be will be the mossle so thenny's will have better numbers in q q4. >> felt like we were talking to stadler on this one. >> does that make us the money

sets in. >> you're hardly miss piggy though. >> five more days before we fall off the fiscal cliff or not. we'll ask the chair of the commission ed rendell what he thinks. >> and then later, all the predigses for the certainly media interest next year. we'll see if this sector will be hot or not coming up. time to today's today's close with this. gift card in the u.s. are so lop lar that if you lied the cars sold last year ent to ent, they would total just how much? we'll tell you nicks.

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this invitation is brought to you by bp and all of us who call the gulf home. to toast today's market close we asked how much will go unredeemed in gift cards this year? $1.7 billion. according to ceb tower group. >> waiting to be spent there. time running out, as we know. five days remaining until the fiscal cliff deal should it be put together in washington and the delay is sparking concern among key groups like fix the debt cape.

>> former pennsylvania governor ed rendell joins us. governor, are you losing hope that washington can get a deal done before the gel. i think there will be a rate change and we had a chance to get a deal but we blew it. if we do get a deal in the next five days it's a kick the can down the road deal. if they compromise on rates we'll still have $800 billion, $900 billion of revenues to be raised and nobody knows where it's coming from. >> are you that surprised we'll only get a band-aid? with all due respect, sir, we are talking about a committee of politicians and some tough choices have to be made to solve the debt crisis that we have in

this country. they know they won't do that because they won't be returned to office. >> it is% plus, people wanted this debt fixed and wanted it by compromise. the nation's crisis and opportunity was so great that i was hoping we would rise above it and get something done. >> why won't they? how else do you explain the lack of progress, the lack of negotiations to this point? >> i think it's because the president doesn't have february to negotiate with. no offense to speaker boehner, and what has to happen democrats in the middle. we'll lose democrats on the far left because there are going to be some entitlement cuts and reforms, and republicans in the middle are going to have to vote this, and they will have to vote it even if it means that 40% of the republicans vote yes and 60%

vote no. the republicans will have to face up to the fact that it has to be done, and if we care about this country and all of the politicians believe ate about caring so much about the country, getting the economy moving again, well, we better do something in the next month, month and a half and it better be real and it better be big. >> if we only do a kick the can down the road, governor? when's the day of reckoning? can only kick the can down the road for a certain amount of time and then it's like a total little pear shape, right? >> the day of reckoning could be when we go off the fiscal cliff, everybody votes to have the tax cuts. everybody gets the political advantage of a tax cut so scared little rabbits don't have to worry about raising taxes. we'll have to get serious.

your guys just gave us, it was depressing enough to go out and have two double cheeseburgers and a milk shake. it was awful, and it's about time. we need a plus. we need something to charge up this economy, and getting this done. robert zelic on our board on the campaign to fix the debt, you know, the former head of the world bank, he said america is one good debt deal away from being the dominant economy for the next 25 years in the entire world. >> so you believe it's going town lock -- taking away that uncertainty is going to unlock cap "x" and hiring and consumers to open up their wallet? you think it will make that much of a difference? >> i believe it will. how many other arrows do we have in our quiver? >> there's an optimistic thought. better have another cheeseburger, governor. good to see you, again. thank you. >> good to see you guys. >> let's fix this. >> yeah. wouldn't that be nice. i'm the optimistic one on this show, and i'm starting to lose that here.

if you're watching, maria. >> facebook on the defensive. despite backing off from plans to sell insta grams photos for advertising purposes facebook now faces this big lawsuit. find out why after the break. plus, we'll also tell you what's getting mark zuckerberg's sister randi upset with. >> and our julia boorstin has the 2013 trends which you cannot miss so keep it right here on cnbc. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. excuse me, sir i'm gonna have to ask you to

power down your little word game. i think your friends will understand. oh no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly. ok, did she seriously just say that? geico. just click away with our free mobile app.

the first class action lawsuit has been filed as a result of instagram's proposed terms of service change that would have allowed the social media company to sell users' photos without permission for advertising and the idea created a big backlash that forced the company to apologize and make about an about face. >> if instagram is not going forward with these plans, why the lawsuit? taking us through this is roy choy, managing editor at technobuffalo. that's the question i've had all along. they backtracked big-time when there was this backlash and yet we still have a class action lawsuit being brought. does it have any merit, do you think? >> i think it has absolutely no merit. i think it's a frivolous

lawsuit. look for a bunch of attorneys that are looking to get their name out there in privacy law. >> do you think it's going to be dropped then? >> i definitely do think so. i think the only change that is really substantial at this moment is -- you can't take instagram to a court of law outside of a class action lawsuit. they have instituted a -- an arbitration system, so it does -- it does make attorneys a little bit less prone to filing lawsuits. >> all right. but what did they learn in the meantime? i mean, the memo from the ceo seemed to suggest that the language that they used in announcing some of these privacy changes and was very confusing, you know, the fears about people being able to use their own photo wasn't actually accurate. am i reading thag right in. >> i think they are going back

on think word was you can't operate insta garage the way you do facebook. with facebook, once they institute a change they go with it. they don't ever back down. with instagram you saw a very vocal audience come out and say that this is wrong, not something that we believe in, and they don't have the huge social network that facebook does nor the monopoly that facebook does so instagram had to go back and apologize because they were going to lose their large user base. >> what does this mean in terms of facebook's plans for instagram down the road, do you think? >> i'm sorry, could you repeat that. >> what. what do you think we've learned in terms of what facebook is going to do with instagram down the road? >> i think facebook is going to fold instagram into their company more like a separate entity or company. you're going to see a lot more of photo features built into facebook, but it will be instagram being built into facebook. >> still a good brand, though? >> i love it. >> have they tainted it?

>> i love instagram. but if you go on my feed, you'll see photos of my puppy, so -- >> but what about the -- >> that's all you see. i still love instagram. i think they're going to have to do a lot to keep their strong customer base of photographers and photographer wannabes to stay along. >> the number of people who fled and are still threatening to flee and are suing the company, have they tainted the brand, in your view? >> i think they have done so a little bit but there are plenty of companies that have tainted their brands through small missteps. new coke is a great example. but coca-cola is still a strong brand. if they keep at it and stick to the core of what makes instagram really cool tool is making it a neat and great feature for social networkers. >> all right. thanks, roy. >> thank you. >> look forward to seeing the photos of your puppy. see you later. by the way, staying with social media, does facebook's privacy policy confuse founder mark

zuckerberg's sister? randi is her name. she's the former marketing director of the social networking giant. she got into a twitter tussle with one of her followers on facebook. one of them reposted a photo of the zuckerberg family that randi originally published on facebook. after a testy exchange that was deleted, randi competed, "always ask permission before posting a friend's photo publicly. it's not about privacy settings, it's about human decency." however, keep in mind, everybody, photos that are tagged are visible to friends of every user in a photo and not just the friends of the user who posted it. it's one of the many loopholes in facebook's privacy feature that some say should be fixed. oops. >> that's a little bit of an oops. i kind of agree in the sense that if you are going to retweet or repost somebody's photo, you should probably ask for their permission. >> goes without saying.

>> at the same time, this is the world that we live in, right? everybody is pretty much up for grabs. if you don't want it to be seen, don't post it in the first place. >> see the music industry. >> staying with the social meet. after a year marked by growing pains, social media has a strong start. here julia here now with her predictions. >> reporter: it's all business for social media in 2013. facebook will rev up mobile ads, creating an ad network to take on google and look for new revenue. building on gifts, facebook create new e-commerce options and focus on selling more digital content. expanding beyond its recent partnership with i tones, adding more tv, music and movies. look for twitter to file for an ipo by the end of the year. it will grow revenue through new ad products and tools for marketers. plus, it will try to add users by creating an easy news feed for those only interested in following and not tweeting.

as twitter competes with facebook forred advertisinadvert for spats. 2013 will be the year of social e-commerce. even the most traditional retailers whether have likes, pins and tweets into websites. and social plattforms like pinterest will step up their efforts to diversify into a range of social mobile shopping options. but they're unlikely to save themselves, more likely to be acquired. well, you give us a minute and a half -- >> and our wall street panel of top money pros will tell you what will move the markets first thing tomorrow morning. next, do not miss that. next, do not miss that. we're back after this.

with just 30 seconds on the clock, our next guests will tell you what could move the market tomorrow. >> there's our panel. joining us now, james carl from adviser shares and joshua pierce from bay state wealth management. gentlemen, welcome. you have 30 seconds. tell us what you think happens tomorrow. >> thank you. as the fiscal impasse dominants, we're focused on initial claims out tomorrow.

new home sales data has been steadily rising. as economic data improves and real estate rebounds, we'd like to mention an environmental services stock that we cover, $10 price target. the stocks had an explosive rally this year. recently consolidating with a technical breakout. we think it trades into the next higher box. thank you. >> and four seconds to go. james, break it down for us in your 30 seconds. >> thank you, mandy. tomorrow we expect some interesting information coming out of the new home sales, related specifically to the u.s. dow jones home construction etf ticker, itb. it's been the number one performing exchange traded fund for the year, yielding investors about 80%. and we expect the home sales numbers to come in pretty -- pretty strong. so, we expect that etf will maintain its top ranking.

>> all right, see what that does. josh? 30 seconds. what happens tomorrow? >> thanks, bill. obviously, there's no big news coming out overnight in the markets -- >> we don't think. >> exactly. we don't think. with the holiday season on us, we're thinking, you know, you don't need 30 seconds to say two words fiscal cliff. we're focusing on the global markets, looking at japan and maybe trading data coming out later in the day tomorrow, thinking about their cpi number. we're looking at that to see how that's going to affect technology products like the ipads and gadgets and things of that nature. that's going to be huge as a lot of the things we use day-to-day is produced in japan. >> guys, good job. thank you all for joining us as we look ahead to tomorrow. today, a wait and see market since we still don't have any resolution on the cliff and doesn't look like we will for a couple of da